2012 Changes Related to Retirement Benefits for Clinical Faculty
Recently Dr. Good announced a new college initiative that will optimize benefit programs for our faculty. The College of Medicine is creating two employment/salary records for most clinical faculty. While total salary will not change and faculty will continue to receive one paycheck from UF, salary will be split between the two salary records.
- The first salary record will be linked to the state of Florida’s Optional Retirement Program (ORP) and, for full-time faculty, will have a salary of $25,000.
For part-time faculty, the first salary record will be pro-rated based on FTE.
- The second salary record will be linked to the College of Medicine’s local retirement program and will have a salary equal to the remainder of current total UF salary.
Because UF will need to know where to deposit employer-paid retirement contributions associated with the newly established second employment/salary record, faculty members impacted by this change will need to contact one of the College of Medicine’s local retirement program vendors.
The majority of clinical faculty members currently participate in the ORP and should already have an established relationship with one of the participating vendors. A faculty member may elect to use the same vendor for both the ORP and AEF retirement plans; however, there is an option for selecting a different vendor when enrolling in the College of Medicine’s local retirement program. The vendor representative will assist with completing a “Vendor Selection Form,” which is the enrollment document that authorizes UF to remit employer-paid retirement contributions to the vendor selected. Until a completed “Vendor Selection Form” is signed by the annuity representative and submitted to UF, employer-paid retirement contributions will be remitted to a holding account.
If a faculty member is currently making voluntary contributions to the ORP, the reduction of salary associated with the ORP account to $25,000 will impact the amount of annual voluntary contributions. Faculty members are advised to review voluntary contribution amounts with the retirement vendor to ensure contributions at the desired amount within the IRS limits. To provide an additional means to save for retirement, UF continues to offer a separate voluntary 403(b) plan. The same vendors are available in the voluntary UF 403(b) plan.
As an example, if current ORP salary is $200,000, and the employee is voluntarily contributing 5% through the ORP that is a total of $10,000. Under the two employment/salary record system, the ORP salary will be $25,000 thus reducing voluntary contributions to $1,250. To continue the voluntary contribution amount at $10,000, a UF 403(b) plan would need to be opened with an annual contribution of $8,750.
For additional information or assistance, please contact the company representatives at the numbers shown below or call the College of Medicine Fringe Benefits at (352) 273-5077.
Eugene “Gene” Varela